Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.

And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.

There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:

Invest mainly in well-established companies;
Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
Downplay or avoid stocks in the broker/media limelight.

Make better stock picks when you read this FREE Special Report, Canadian Growth Stocks: WestJet Stock, RioCan Stock and More.

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Growth Stocks Library Archives

Growth Stocks

We prefer Stantec for infrastructure profits

Governments plan to stimulate economic growth when the COVID-19 pandemic eases with big investments in public infrastructure such as roads, bridges and power grids. That should lead to new contracts for these leading engineering firms, but we prefer Stantec for your new buying.

STANTEC INC....

2 min read

Pat McKeough

Growth Stocks

Transcontinental cuts its plastic use

TRANSCONTINENTAL INC. $19 is still a buy for aggressive investors. Canada’s leading commercial printer (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 87.0 million; Market cap: $1.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.7%; TSINetwork Rating: Average; www.tctranscontinental.com) has sold most of its newspapers and other media operations in the past few years....

1 min read

Pat McKeough

Growth Stocks

Here are two picks for post-COVID-19 gains: FirstService Corp. and Colliers International Group Inc.

The shares of these two real estate firms have soared from their March 2020 lows on expectations that COVID-19 vaccine programs will let retail stores and offices reopen. Both of these stocks should also gain as property owners transform their buildings to new uses after the pandemic.

FIRSTSERVICE CORP....

2 min read

Pat McKeough

Growth Stocks

Nutrien is less risky than it seems

A wide variety of random factors—from weather patterns and crop prices to politically motivated tariffs—affect fertilizer demand and prices. However, Nutrien’s unique business model combines the production of bulk fertilizer with the retail sale of agricultural products to farmers....

4 min read

Pat McKeough

Growth Stocks

FedEx lets you ride the online shopping wave

FedEx’s shares have shot up 93% in 2020, as the COVID-19 pandemic prompted consumers to buy more goods online. That has spurred strong demand for the company’s delivery services. In fact, FedEx expects U.S. parcel volumes (for all carriers) will rise to 100 million a day in 2023....

2 min read

Pat McKeough

Growth Stocks

Quaker sees more savings ahead

QUAKER CHEMICAL CORP. $249 is still a buy. The company (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 17.8 million; Market cap: $4.4 billion; Price-to-sales ratio: 4.4; Dividend yield: 0.6%; TSINetwork Rating: Average; www.quakerchem.com) completed its acquisition of rival specialty chemicals maker Houghton International in August 2019....

1 min read

Pat McKeough

Growth Stocks

A COVID vaccine should spur their progress

On April 1, 2020, the old Arconic Inc. split into two new companies: Howmet and Arconic Corp. As a result, each Arconic Inc. share automatically converted to one share of Howmet; investors also received one share of Arconic Corp. for every four shares of Arconic Inc....

2 min read

Pat McKeough

Growth Stocks

Fast-food powers Lamb Weston

LAMB WESTON HOLDINGS INC. $73 is a buy. The company (New York symbol LW, Income Portfolio, Consumer sector; Shares outstanding: 146.1 million; Market cap: $10.7 billion; Price-to-sales ratio: 2.9; Dividend yield: 1.3%; TSINetwork Rating: Average; www.lambweston.com) is a leading producer of frozen french fries, potatoes and other packaged vegetables....

1 min read

Pat McKeough

Growth Stocks

These two will build on their strong start

On April 3, 2020, aerospace products maker Raytheon Technologies Corp. (formerly United Technologies) spun off its Otis (elevators) and Carrier (heating and air conditioning equipment) businesses. For each share investors held, they received 0.5 of a share in the new Otis and 1 share in Carrier.

Both stocks are off to strong starts—Carrier has soared 225%, while Otis is up 52%....

2 min read

Pat McKeough

Growth Stocks

The pandemic fuels Stanley’s gains

STANLEY BLACK & DECKER INC. $186 is a buy. The company (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 160.2 million; Market cap: $28.8 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.8%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools for consumers....

1 min read

Pat McKeough

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Subscriber since 1996. Inner Circle Member Since 2006
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Inner Circle Pro subscriber

Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.